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Ukrainian Venture Market in 2016 [Overview]

The Ukrainian Venture Capital and Private Equity Association (UVCA) has released a report on venture capital that was invested into Ukrainian companies during 2016. The report includes data about angel investors, venture and private equity investment deals.

The key results of the report of 2016, showed the highest number of investment deals since 2010. The total number of such deals was 87, which is 32%more than the previous year.

The key facts of the previous year:
– The IT and tech market reached $88 million last year, and $400 million during the last five years;
– The volume of deals has shown a 125% increase comparing to 2014, but has decreased by 33% as compared to 2015. Such decrease could be explained by a fact that there were several deals in 2015 amounted to dozens millions of US dollars. One of the most memorable deals of 2015 was Snapchat’s acquisition of Looksery from Odesa in a $150 million deal;
– There were 73 seed-stage deals in 2016, and it’s 15 deals more than in 2015;
– Up to $1 million was brought as a part of all-stage investment deals on average.

According to Andrey Kolodyuk, the Chairman of UVCA, the number of deals and their volume should increase in 2017 as we can see a positive tendency. Ukrainian market of IT outsourcing has all opportunities to grow to $5-7 billion turnover in the near future.

According to Olga Afanasyeva, the Executive Director of UVCA, foreign investors participated in 60% of all deals with 80% of international capital in total investment volume in 2016.

According to this report, there are 3,000 startups in the Ukrainian market nowadays. Right now there are 31 funds operating in Ukraine, consisting of 5 incubators and accelerators, 1 corporate fund, 17 venture capital funds, and 8 private equity funds.
All the facts below should be an additional motivation for international investors in Ukraine to increase their investment.